why I hate dogs

poop

Our dog poops in the basement.  We can’t get him to stop.  Tonight we were gone for less than an hour, but when we came home - a nice present on the floor.  He knows where he’s supposed to go, and normally he does a good job.  But more often than should be, he doesn’t wait to go out.

pee

Our dog pees on me whenever I come home.  He really misses us, so whenever we return from being gone he goes nuts, jumping, barking, licking, running around.  Which is all good.  But when he gets to me, for some reason his pee-pee muscle just relaxes.  Never fails.  Every time.  But only for me, not for the rest of the family.

barking

Our dog barks uncontrollably whenever anybody who isn’t a member of our immediate family comes over.  This includes good friends of ours, frequent visitors, and especially the meter reader.  We can’t get him to stop.  For a while our daughter’s friends were afraid to come over because of the dog.  And God forbid another animal walk by the window.

shedding

Our dog is losing his hair.  Or so it seems.  We have dog hair on the floor, on the couch, on our coats, on the table.  You don’t have to find too many of these hairs in your food before you start to wonder how sanitary it all is.

bolting

Our dog likes to bolt.  If we leave the door open a split second too long, he’s gone.  And he doesn’t want to come back.  We can call his name, offer treats, offer car rides.  No luck.  The neighbors have a horse and the dog likes to get in the horse’s pen and yap his head off.  The horse is starting to get annoyed.  I fully expected the dog to get a horse shoe to the head one of these days.

expensive

Our dog costs a lot of money.  We have to feed him, groom him, provide bed and bedding, get his shots, and buy him chew toys.  We were thinking of fencing the back yard, mainly to help with the bolting problem, but that was going to cost a couple thousand dollars.  I was going along with the plan for a while, then one day I woke up and said, “That much money for a stupid little dog?!”

Face it, dogs don’t bring that much value to our lives.  Sheep dogs?  Sure.  Guard dogs?  Sure.  Lap dogs?  Are you out of your freakin’ mind?  I know I was.

I originally posted this article on my other blog, http://weiszguy.wordpress.com.  My editor saw it, liked it, and ran it in the May 7, 2008, edition of the Greenhorn Valley View.

financial help

What do you do when someone you love needs financial help? I think we all know someone who could use some financial help, and we all know someone who has ruined themselves by giving money to someone, only to see it wasted.

The desire to help those in need is innate. It is a very cold person who can see a loved one in need and not desire to help. But the desire to protect what you have is also innate. The thought that someone we love might misuse our resources keeps many people from helping in the first place.

So what to do?

If you are the lender in this situation, DON’T LEND ANY MONEY! The lender/borrower relationship is necessarily strained, and the last thing you want is to let money drive a wedge between you. The fact that your relation owes you money will be the only thing you think of every time you see him. And believe it or not, it’s the only thing the borrower will think of every time he sees you.

Instead of lending money, giving money might seem like a more sensible solution. If you give the money, without any expectation of having it returned, you’ve helped out without placing a needless burden on either of you.

But now you have another problem. Is the money you are giving actually going to help? Or are you simply enabling the other person to keep doing what they’ve always done? Is the other person learning new habits? Or are they being allowed to continue in their destructive habits?

Those are questions I can’t answer for you right now, the answers depend on the individual situation. But they are very important questions. You must learn the answers to those questions if you don’t want to see your money wasted.

There are perfectly legitimate reasons for giving money to help someone out, and giving money may be a great short-term solution, but don’t forget that the best way to help the other person is often to let them struggle to figure out the problem for themselves. The lessons that stick with us the longest are usually the lessons we’ve had to learn for ourselves. By giving someone money, you may inadvertently be teaching them the incorrect lesson. You may be teaching them they can depend on you when they’re in trouble, rather than depending on their own abilities.

Give when necessary. Withhold when necessary. Carefully consider all the aspects. Above all, use your head.

This article originally appeared in the April 30, 2008, edition of the Greenhorn Valley View.

buckets of money

My car bucket is getting low. The bucket of money I’m using to one day buy a new car, that is. (I keep my money in buckets. You could call them envelopes, or accounts, if you wish, but I prefer the term buckets. It makes me feel like a guy whose pockets aren’t big enough to hold all his cash! I hope to upgrade my buckets to wheelbarrows some day, or maybe dump trucks.) Our income is down a little this month, so we’re tightening our belts and dipping into some buckets that we normally wouldn’t be touching. It pains me to spend money out of the wrong buckets, because that means we’ll have to wait a little longer to buy what we were saving for. Now I have to put off that car a bit, or buy one without all the bells and whistles that I really wanted.

But when the choice is buying a car someday, or putting food on the table right now, the food wins every time. Some of you are probably shaking your heads, because that money should be sacred, used for its intended purpose and nothing else. Others of you probably wish you had other buckets you could dip into when needed. As it happens, I feel both of these emotions at the same time. I’m upset that I’m raiding funds that have been set aside for other things, but I’m also grateful that I have the other funds in the first place.

Which brings me to the point. Money can jerk you around. Income can ebb and flow. Just the thought of money can batter your emotions like a ship in a storm. Would you rather have buckets of money here and there that you can dip into, or would you rather wonder where your next meal is coming from? Let me suggest that if you start saving money for a specific purpose, and one day you end up using that money for something you didn’t initially intend, you’ll still be happier and in a financially better position, even though your initial purpose was thwarted. The hope of one day buying a new car (or some other goal that excites you) may be the hope that saves you in the next downturn.

If you are in the happy position of being able to pay all your bills at the moment, you might consider squeezing a little more out of your budget and socking it away somewhere. My money says you’ll be happy you did.

This article originally appeared in the April 23, 2008, edition of the Greenhorn Valley View.

taxes are painful

Paying taxes is painful.  Every year you have to give a significant amount of money to the government.  The problem, from the government’s point of view, is that very few people would actually save money for taxes.  So rather than pay taxes once a year, the government takes a chunk every payday, and settles once a year.

If you’re an employee, you don’t notice this so much, because the government takes its chunk before you ever see it.  Every spring we figure out how much we owe for the previous year, compare that amount to what the government actually took as the year went along, and then settle the difference, which hopefully is small.

If you’re self-employed, the government can’t get to your paychecks, so you have to be disciplined enough to set aside a little bit every time.  But Uncle Sam still won’t let you wait a whole year.  You have to file quarterly estimated returns and then settle the difference at the end of the year.

The self-employed certainly feel the pain more acutely than employees, but the financial impact is the same for both - a significant amount of money is going to the government.  To be fair, the government does some great things with that money.  Roads, schools, and police are services we all benefit from.  On the other hand, the government does some not-so-great things with that money.  We don’t need any more entitlement programs that teach people to be dependent rather than self-sufficient, for example.  Some might also point to over-bearing regulatory agencies and misguided wars.

So what can we do about it?  In the short term, really examine how much the government gets each paycheck.  Grab a W-4 from your employer and claim every exemption you are entitled to.  This will reduce Uncle Sam’s bite each paycheck and leave more available for you.  At the end of the year, you might not get a very large refund, but so what?  You’ve had more money all year long - to do with as you please.

In the long term, start thinking independently.  Pretend the government doesn’t exist and isn’t going to take care of you.  The fact is, the less we need the government, the less they’ll need our tax dollars.  Think about protecting yourself, feeding yourself, educating yourself (and your kids), and saving for your own retirement.  How could you do these things better?  How could you do them in a way that didn’t depend on the government?  Every time you have a chance to vote for or against a tax increase, don’t ask yourself if the new tax is for a worthy cause - of course it is.  Instead, ask yourself if the new tax will support a program that will make independent living a little more difficult.  Worthy cause or not, we do not need any new government agency to answer to.

In short, more taxes equals less freedom, not more.  Paying taxes is painful.

This article originally appeared in the April 16, 2008, edition of the Greenhorn Valley View.

credit report

If you’ve ever been turned down for a car loan, home loan, or credit card, did you know there is something you can do about it?  If a company is deciding whether or not to loan you money, the first thing they do is pull your credit report.  Your credit report is a listing of everything you’ve ever done, credit-wise.  A potential lender can look at your report and see how many times you’ve made a late payment, and how late it was.  They can see how many loans you have right now, as well as your combined credit limit on all those loans.  They can compare how much you currently owe, with how much you’re currently making.  Examining all this information gives them a pretty good picture of what kind of borrower you are or will be.

But what happens if that information is wrong?  You could be unfairly denied a loan.  Sometimes your report contains information on old loans that you paid off long ago.  It could also contain old credit limits or balances, and this could cause your new lender some jitters.  In a worse case scenario, someone may have stolen your identity, and is racking up bills on your report.

In any case, you’ll want to review a copy of your credit report before you apply for a loan.  Better to be surprised before you apply than after.  There are three agencies that collect your credit data, and you’ll want to examine each agency’s version of your credit.  You can get a free credit report from each agency once a year at http://www.annualcreditreport.com/ Request a report from all three agencies, then make sure the data they maintain is an accurate picture of your credit history.  If you find errors on your report, you can have the agency verify it.  Often the mistakes can be corrected with just the initial request.

Don’t cheat yourself.  Check this out before applying for a loan.  Armed with a clean credit report, you’ll stand a much better chance of qualifying for that new loan.

This post originally appeared in the April 9, 2008, edition of the Greenhorn Valley View.

investing vs gambling

Investing is often compared to gambling.  Many people who would never set foot in a casino for fear of losing all their money, won’t invest in the stock market for the same reason.  Other people treat their investing like a trip to the casino.  That is, they just pick random stocks, with nothing more than a hope that they’ll do well.  Is it fair to compare investing and gambling?  There are certainly a number of similarities.

In both, you can make a lot of money or lose a lot of money.  In both, you can make a lot or lose a lot in a single play.  Victories in both will cause your heart to race.  Losses in both can cause depression.  The difference is in the odds.

At the casino, the one-armed bandits are rigged to return to you, on average, 98% of what you put in.  On any one play you might win big or lose big, but if you play long enough, you’ll find that you lose about 2% on average.  This is how the casino makes money.  They’re providing “entertainment” for the low, low cost of 2%.

The stock market exists for a different reason.  It is simply a market where shares of company ownership are traded.  It returns to you, on average, 110% of what you put in.  On any one play you might strike it rich or lose your shirt, but if you’re in the market long enough, you’ll find that you gain about 10% on average.

So is the stock market like a casino?  Sure.  A casino where the odds are stacked in your favor!  So be careful.  By all means, make wise investing decisions.  But there’s no need to fear the market.  It’s not there to soak you.

This post originally appeared in the April 2, 2008, edition of the Greenhorn Valley View.

what’s it all for?

Alex passed away recently.  A heart attack took him quickly in the middle of the night.  Before anybody knew what was happening, it was over.

I met Alex when he was my roommate at a two-day company meeting.  That first evening, tendonitis exploded in my wrist.  I didn’t know what was going on, but the pain was bad enough I couldn’t sleep or even think about anything else.  Alex took me to an emergency room, in a strange city, and stayed up with me the entire night.  He told me stories of his family to keep me entertained.

Alex left behind a wife, two grown children, and a 13 year old daughter, all of whom are mourning the premature loss of their father and husband.

He also left behind a career in software sales, which means he was very good at showing customers how certain programs could make their lives easier.  But even though he was a gifted salesman, his employer will simply find another salesman and move on.

So what I want to know is, did Alex accomplish what he wanted to?  Now that he’s gone, does it matter that he was a good salesman?  How much of what we do on a daily basis actually makes a difference?  How much of what we do will impact those around us that we care about?

More importantly, how much of what I do matters?  Does my daily routine serve mainly to put money in my pocket, or does it do something beyond that?  Money is important, of course, because it can allow us to do the things that matter.  But if all we want to do is line our pockets, we may get to the end and find we didn’t actually accomplish much.

When I get to my end, whether it’s tomorrow or 60 years from now, I don’t want to be wishing I could have done more.  I don’t want to regret the path I took.  I want to have done something that mattered everyday.  I’m thankful to have known Alex, and to have the chance to think about my priorities now, before it’s too late.

This post originally appeared in the March 26, 2008, edition of the Greenhorn Valley View.

live for the future

It seems to me all of us have at least one choice that is constantly before us.  The choice to live in the now, or to live for the future.

If you choose to live for the future, it means you may one day be able to realize some pretty impressive dreams.  If all of your energy, time, and resources are channeled toward one vision of something you could do or have in the future, you stand a pretty good chance of making that vision a reality.  People with a vision may be sacrificing a little right now, they may be channeling so much of their resources into their dream that they have to get by on less in the present.  But you rarely hear them complain about it.  It’s almost like they don’t realize they could have more now.

On the other hand, if you live in the now, your life likely contains the things that make you happier right now.  You may have more DVDs, a bigger house, and eat out more.  You may or may not feel richer with all this stuff, but people who sacrifice dreams for the present are frequently unsatisfied with their current income or the amount of stuff they have.  It seems more isn’t enough.  Although people with dreams may not achieve them, people who sacrifice their dreams will never achieve them.

It is often difficult to sacrifice current desires for a nebulous future.  Here’s a mind trick that may make it easier.  Imagine yourself 20 years from now.  If all you can see it what you’re doing now, maybe it’s time to re-evaluate your priorities.  If you see yourself living a very different life, do you think you have a better chance of achieving it by living large right now or by planning carefully for the future?  That’s what  I thought.

This post originally appeared in the March 19, 2008, edition of the Greenhorn Valley View.

net worth

How much are you worth?  If you sold everything you owned right now and paid off all your debts, would you have any money left over?  How much?  This number is called your “net worth”.  If you OWN more than you OWE, you have a positive net worth.  If you OWN less than you OWE, you have a negative net worth.  If your goals in life include retiring, funding higher education, starting a business, charitable giving, or any number of other cash-intensive projects, you’ll want your net worth to be in positive territory, and growing each month.  Calculating your net worth each month can be extremely useful, telling you whether or not you are on track - and it can also be fun.

Things you own are called “assets”.  Assets can be in any shape or form, such as: cars, homes, cash, jewelry, bank accounts, investments, or priceless works of art.  Basically, if you can sell it, it’s an asset.  Make a list of all your assets and what each one is worth, and then add them all up.  If you’re just starting out, you might not have a lot of the things I just listed, so feel free to include things like stereos or textbooks - as long as they could be sold.  This is how much you own.  Ideally, you want this number to be large and getting larger.

Things you owe are called “liabilities”.  Liabilities also come in many shapes, but all of them represent money that is going to come out of your pocket: mortgages, auto loans, student loans, and credit card balances.  Make a list of all your liabilities and how much you owe on each one, and add them up.  This is how much you owe.  Ideally, you want this number to be small and getting smaller.

When you subtract your total liabilities from your total assets and figure out how much you’re worth, don’t be too upset if your net worth is smaller than you’d like.  This is just the base number.  If you do the calculation again next month, and the number is larger than it was last month, congratulations!  You’re making progress.  Knowing that you’re going to be calculating net worth again next month may also help you make purchasing decisions at the store.  If you don’t buy the item, the money you didn’t spend will stay in your bank account, and will add to your asset total next month.

Figuring out your net worth can be a big help.  Email me if you’d like to see a spreadsheet I put together for this purpose.

This post originally appeared in the March 5, 2008, edition of the Greenhorn Valley View.

buckets ‘o money

Do you compartmentalize your money?  Studies suggest you do.  Most people have some money that they use for necessities, some money that they use for luxuries, and some money that they are saving for the future.  Many people have these different categories without even realizing it.  For instance, if you’ve ever said, “I need to eat, so I’m going to buy groceries even though I don’t have much money right now,” or “I can’t spend that money, that’s for my retirement,” then you think like this.  The trouble we have is keeping these compartments in proper proportion.

I’ve seen people who save like madmen for retirement, but live like paupers now.  I also know people who spend too much on luxuries now without any thought of the future.  Where is the line between necessities, luxuries, and the future?  Try this little thought experiment.  If you lost your job tomorrow, what could you cut out to survive until you found a new job?  Can you cut out groceries?  Of course not, but you could probably cut out potato chips.  Is a glass of wine with dinner a necessity?  For some people it is, but think very hard before coming to a definite decision.

What about retirement?  When faced with a cash crunch, is it still necessary to save for the future?  Depending on the severity of your fiscal emergency, it may be necessary to suspend saving for a while, but don’t automatically jump to that conclusion.  Could you divert some spending from the luxury category to the retirement category?  Maybe instead of deciding the potato chips are a necessity, you could decide to save that money.  I won’t bore you with a compounding lesson; suffice it to say, even potato chip money, if given enough time, can grow to a substantial sum.

So try to distance yourself from the emotions of money, take an objective look at your categories, and decide how you can best deploy your resources.

This post originally appeared in the February 27, 2008, edition of the Greenhorn Valley View.